President Trump Settles IRS Lawsuit, Secures $1.776 Billion Fund For Victims Of Government Weaponization
President Trump has agreed to dismiss his massive lawsuit against the Internal Revenue Service after reaching a sweeping settlement that includes a formal apology and the creation of a $1.776 billion compensation fund for Americans who believe they were unfairly targeted by the federal government.
The newly established Anti-Weaponization Fund, overseen by the Department of Justice, will allow individuals and organizations to apply for financial compensation if they can demonstrate they were subjected to politically motivated or abusive government actions.
According to administration officials, eligibility for the program will not be limited by political affiliation or by which presidential administration carried out the alleged targeting. Officials say the fund is intended to address broader concerns about government abuse and politically motivated prosecutions.
That means even controversial figures such as Hunter Biden could potentially apply for compensation if they argue federal authorities unfairly targeted them.
“The point of this isn’t to make every January 6-er a millionaire,” one administration official said. “The point is to compensate, and to give entitled people back some of their dignity and some of what they lost.”
The settlement resolves President Trump’s lawsuit against the IRS over the leak of his confidential tax returns, which were published in 2019. The lawsuit accused the federal government of failing to protect private taxpayer information.
Former IRS contractor Chaz Littlejohn later pleaded guilty to illegally disclosing tax records belonging to President Trump and thousands of other wealthy Americans. He was sentenced to five years in prison in early 2024.
Under the agreement, President Trump, Donald Trump Jr., Eric Trump, and the Trump Organization will receive a formal apology from the IRS but will not personally receive money from the compensation fund.
Administration officials stressed the settlement does not impact separate legal disputes involving the FBI’s Mar-a-Lago raid or past investigations into alleged Trump-Russia collusion.
President Trump has repeatedly argued that federal agencies were weaponized against political opponents and vowed during his second inaugural address to end those practices permanently.
“Never again will the immense power of the state be weaponized to persecute political opponents,” President Trump declared earlier this year.
The compensation fund will reportedly be overseen by a six-member board, with most appointments controlled by acting Attorney General Todd Blanche. Congressional leaders including House Speaker Mike Johnson and Senate Majority Leader John Thune will also play a role in the selection process.
The board will have authority to review claims, issue financial compensation, recommend formal apologies, and request additional evidence from applicants or federal agencies. Claims approved by the board will be subject to public records laws and federal audits.
The program is scheduled to expire on Dec. 15, 2028, with any unused funds returning to the federal government afterward.
Administration officials pointed to previous federal compensation programs as precedent, including a settlement fund established during the Obama administration for Native American farmers involved in the Keepseagle v. Vilsack case.
The settlement represents one of the most aggressive efforts yet by the Trump administration to institutionalize its broader campaign against what it describes as political weaponization inside the federal government.